JOHANNESBURG, September 27 (ANA) – Audit firm SizweNtalubaGobodo (SNG) has dumped Gupta-owned mining companies and resigned as auditors of the controversial business family’s Oakbay Resources and Energy Limited company.
Last week Oakbay Resources, a miner of energy-related resources, with a priority focus on uranium and assets including Shiva Uranium, lost a high court bid aimed at preventing the Bank of Baroda from closing its bank accounts.
Gupta-owned Oakbay faces allegations, including from senior members of the ruling African National Congress party, that it uses its “proximity” to President Jacob Zuma to wield undue influence over officials in order to secure lucrative government tenders.
SNG said on Tuesday night that its board took this decision after a thorough assessment of its relationship with the company which has spanned a period of 18 months.
“When SNG took over the audit of Oakbay the risks associated with the engagement were evaluated in terms of the professional standards,” SNG said in a statement.
“As is required by the Code of Professional Conduct, when SNG were approached to take over the audit of Oakbay, SNG made contact with the outgoing auditor in order to establish whether there were any professional reasons why it would not be appropriate to accept the engagement.
“However, more recently following subsequent developments SNG have concluded to withdraw from the engagement.”
The audit firm said it was that it had carried out its responsibilities in accordance with the Audit Professions Act and that it was committed to continuing upholding its high professional standards as regulated by the Independent Regulatory Board of Auditors.
KPMG resigned as auditors of Gupta-owned businesses while Sasfin Capital and Barclays Africa also severed ties with them due to concerns over their relationship with President Jacob Zuma.
– African News Agency (ANA)
